English text status

English translation published by the NBR in its bilingual Regulations file (marked unofficial). The Arabic text published in the Official Gazette remains the legal reference in the event of any discrepancy.

Practical summary

Services broadly include granting or surrendering rights, making facilities or advantages available, agreeing not to act or allowing conduct, transferring an indivisible share and licensing intangible rights.

Who should read this?

Service providers, rights holders and commercial-contract teams.

Why does it matter?

A Service is not limited to labour or advice. Paid forbearance, licensing or access can be a Service even without physical delivery.

Grant or surrender rightForbearanceIntangible rights

Current text

A Supply of Services shall include but shall not be limited to: 1. The grant, assignment, cessation or surrender of a right, 2. Making a facility or advantage available, 3. Pledging not to undertake a certain activity or allowing a certain activity to be carried out, 4. Not participating in any activity, or preventing its occurrence, or agreeing to perform any activity, 5. The transfer of an indivisible share in a Good, 6. The transfer or licensing of intangible rights, such as rights of authors, investors, artists, rights in trademarks and rights which the laws of the Kingdom deem to be within this category.

Identify supplied benefit

  1. 1

    Describe right, benefit or obligation.

  2. 2

    Whole Good or indivisible share?

  3. 3

    Check IP and licences.

  4. 4

    Define non-compete scope and Consideration.

  5. 5

    Then determine place and date.

Connected provisions

Direct legislative link

Law — Article (6)

Supply of Services

This Article gives non-Goods examples.

Open connected Article
Direct legislative link

Regulations — Article (13)

Service date

Timing follows classification.

Open connected Article

Official guides and tools

Official text

VAT Executive Regulations

Article (5)

Connected Madar tools

Connected Madar tools

Tax Invoice Centre

Check the invoice route and issue deadline, and calculate VAT for a single transaction.

Illustrative example by Madar

Non-compete payment

BHD 5,000 paid for a one-year promise not to compete is a contractual benefit entering the Services test despite no Good being delivered.

Questions to help you apply it

  • Which benefit?
  • Right or forbearance?
  • Consideration linked?
  • Place and date?